It seems there’s just no end to pump-and-dump scams for useless meme-based tokens. This time, McDonald’s is guilty of promoting a joke coin based on its fluffy purple McDonaldland character, Grimace.
In a January 26 tweet (above) replying to Elon Musk, the fast-food company joked that if Tesla were to accept payments in Grimacecoin, then it would take Musk up on his offer to eat a Happy Meal on TV if McDonald’s would accept Dogecoin. Then the madness began.
Musk Sparks Grimace-Themed Buying Frenzy
Shortly after the tweet, several Grimacecoin-themed tokens were created across a handful of different blockchains by crypto opportunists wanting to cash in on the buying frenzy that followed.
On the Binance Smart Chain (BSC)-based DEX PancakeSwap, the Grimace token surged as much as 285,641 percent in a matter of hours. Trading started at US$0.0007 and reached U$2 before plummeting to US$0.60. It managed to reach a market capitalisation of nearly U$2 million at its peak and somewhat surprisingly hasn’t yet crashed to zero, bouncing between US$1 and US$1.40 at the time of writing. There are currently 2,005 addresses holding Grimace, according to BSCscan.
Poocoin.app Grimace/BNB. Source: TradingView
None of the Grimace tokens has anything to do with McDonald’s officially. On the BSC network alone, there were 10 different Grimacecoins. Other networks with Grimace-themed tokens included Polygon, Ethereum, Avalanche and Fantom, which all surged as apes rushed in.
Some Investors Will Literally Buy Anything
The launch of Grimacecoin shows that some crypto investors really will buy just about anything, even a token that has zero fundamental value or purpose whatsoever.
The power Elon Musk has over hyping the crypto market is quite ludicrous. Whenever Musk mentions anything about Dogecoin, for example, it causes the price to pump. Similarly, his comments around whether or not Tesla would accept payments in Bitcoin also set the charts off in one direction or another. It’s interesting, if not downright concerning.
There is also a divide between the sexes, according to the Saxo survey. Around 21 percent of Australian men claim to have a handle on what cryptocurrencies are and how they work, compared to just seven percent of women.
These findings stand in stark contrast to the IRCI survey, which found that:
28.8 percent (or almost three in 10) of Australians either own or have owned crypto (up from 18.4 percent in 2020); and
the proportion of women who own crypto has almost doubled in 12 months from 10.1 percent in 2020 to 20 percent.
The Saxo poll found that bitcoin was easily the best-known crypto, albeit with an underwhelming 38 percent of Australians surveyed recognising the name. The next most familiar cryptocurrencies were Ethereum, ringing a bell for 12 per cent of Australians surveyed, and Dogecoin next on 8 per cent.
By comparison, the IRCI survey found that nine in 10 Australians were aware of bitcoin with more than one in five owning it. The next-ranked crypto was Ethereum, at 11 percent (up from 5 percent ownership in 2020), on a relative par with the Saxo survey.
Three in Four Australians ‘Unaware’ of NFTs
Perhaps the most surprising Saxo statistic was that 75 per cent of Australians apparently have not even heard of non-fungible tokens (NFTs), though they’ve been by far the hottest blockchain commodity in 2021. Below is a table relating to Saxo’s findings:
As Australian Crypto Owners Push Toward a Million, a CBDC is On the Way
Last week, Australian Federal Treasurer Josh Frydenberg estimated that more than 800,000 Australians have owned cryptocurrency at least once. Crypto was a “fast-moving area” that the government needed to get ahead of, Frydenberg said, while also declaring both the Commonwealth and Reserve banks were planning to introduce a central cryptocurrency.
The Saxo survey found that 42 per cent of Australians would use a cryptocurrency if it were made legal tender tomorrow, but only one in four agreed that cryptos should be declared legal by the government. If cryptos were in legal circulation, one in three Aussies said they would incorporate them in their savings or retirement plans.
In August, the 2021 Global Blockchain Survey conducted by multinational accounting firm Deloitte revealed that 76 percent of respondents believed crypto would be a strong alternative to, or outright replace, fiat money within the next decade.
According to a May survey by TradingView, cryptocurrencies had by then become Australians’ second-most preferred assets, outranking traditional assets such as bonds and futures. Just a month later, another survey by international crypto exchange Kraken found that 40 percent of millennials preferred investing in digital assets over real estate.
Dogecoin is trading in an active uptrend and strong trading volume today. The cryptocurrency gained over +45% in a single day by breaking a falling wedge pattern with strong buying volume on multiple exchanges and surged over +70% in a week.
Let’s take a quick look at the Dogecoin price analysis and possible reasons for the recent breakout.
What is Dogecoin?
Dogecoin DOGE is based on the popular “Doge” internet meme and features a Shiba Inu as its logo. The open-source digital currency was created by Billy Markus from Portland, Oregon, and Jackson Palmer from Sydney, Australia, and was forked from Litecoin in December 2013. Dogecoin’s creators envisaged it as a fun, lighthearted cryptocurrency that would have greater appeal beyond the core Bitcoin audience since it was based on a dog meme.
DOGE Price Analysis
At the time of writing, DOGE is ranked the 9th cryptocurrency globally and the current price is US$0.2154. Let’s take a look at the chart below for price analysis:
After looking at the above 15-M candle chart, we can clearly see that Dogecoin was trading inside the falling wedge pattern on the DOGE/USDT pair. The first resistance was on the $0.1733 price level, which DOGE broke with a strong bullish trend buying volume and is now heading towards the recent high price at $0.2560. Seeing that many Altcoins are holding a strong position this week after the recent bitcoin price crash, DOGE may continue to increase in the uptrend if traders keep buying with high volume.
“The falling wedge pattern is characterised by a chart pattern which forms when the market makes lower lows and lower highs with a contracting range. When this pattern is found in a downward trend, it is considered a reversal pattern, as the contraction of the range indicates the downtrend is losing steam.”
General market sentiment seems to suggest cryptos are hopefully turning back bull run season after recent price corrections. Another reason for this sudden pump in price could be whales secretly buying DOGE for the coming Altcoins rally. A recent tweet was also posted by Elon Musk regarding Tesla to make some merch buyable with Dogecoin:
Tesla will make some merch buyable with Doge & see how it goes
Duration: 6-week course From: November 15 to December 22 Date/Time: Twice a week, Mon and Wed at 7pm AEST Location: Zoom webinar
Where to Buy or Trade DOGE?
Dogecoin has the highest liquidity on Binance Exchange, so that would help for trading DOGE/BTC or DOGE/USDT pairs. And if you’re looking at buying and HODLing cryptos, then Swyftx Exchange is an easy-to-use popular choice in Australia.
Let’s take a closer look at today’s altcoins showing breakout signals. We’ll explain what the coin is, then dive into the trading charts and provide some analysis to help you decide.
1. Dogecoin (DOGE)
Dogecoin DOGE is based on the popular “Doge” Internet meme and features a Shiba Inu as its logo. The open-source digital currency was created by Billy Markus from Portland, Oregon, and Jackson Palmer from Sydney, Australia, and was forked from Litecoin in December 2013. Dogecoin’s creators envisaged it as a fun, light-hearted cryptocurrency that would have greater appeal beyond the core Bitcoin audience since it was based on a dog meme.
DOGE Price Analysis
At the time of writing, DOGE is ranked the 10th cryptocurrency globally and the current price is US$0.2221. Let’s take a look at the chart below for price analysis:
DOGE marines continue holding the price, printing nearly 35% gains during November.
The consolidation near $0.2435 is likely to provide support as the price continues exploring new highs. However, a set of relatively equal lows near $0.2159 provides a tempting target for a stop run into probable support near $0.2050.
A decidedly bearish shift in the market could reach probable support near $0.1980, near October’s monthly open.
Almost no resistance lies overhead, although low-timeframe traders can use the resistance below recent highs near $0.2847 as a first target. Beyond this level, extensions near $0.3067, $0.3252 and $0.3566 give reasonable higher-timeframe targets.
2. Decentraland (MANA)
Decentraland MANA defines itself as a virtual reality platform powered by the Ethereum blockchain that allows users to create, experience, and monetise content and applications. In this virtual world, users purchase plots of land that they can later navigate, build upon and monetise. Decentraland uses two tokens: MANA and LAND. MANA is an ERC-20 token that must be burned to acquire non-fungible ERC-721 LAND tokens. MANA tokens can also be used to pay for a range of avatars, wearables, names and more on the Decentraland marketplace.
MANA Price Analysis
At the time of writing, MANA is ranked the 23rd cryptocurrency globally and the current price is US$5.09. Let’s take a look at the chart below for price analysis:
Like many other altcoins, MANA set a new all-time high during mid-November before retracing 35% to the low at $4.35 last week.
Price broke through resistance near $4.86, which may mark an area of possible support on a retracement. If this support fails, bulls might also step in near $4.73. However, a drop this far increases the chances of a stop run to $4.60 and possibly into support near $4.55. For now, continuing bullish market conditions could help $4.90 become support.
The swing high around $5.15 gives bulls a reasonable first target, with $5.20 also likely to draw the price upward. Higher-timeframe resistance beginning near $5.25 or $5.30 could cap the move or trigger consolidations. If bullish market conditions continue, bulls might test probable resistance near new all-time highs near $5.40.
3. Mithril (MITH)
Mithril MITH is a decentralised social media platform on the Ethereum Blockchain that rewards users for creating content. The team plans to partner with existing social platforms to drive the adoption of its ERC-20 MITH token, which can reportedly be integrated with any social media platform. In addition to storing funds, the Mithril Vault wallet can be used for staking and swapping into other currencies.
MITH Price Analysis
At the time of writing, MITH is ranked the 494th cryptocurrency globally and the current price is US$0.09727. Let’s take a look at the chart below for price analysis:
During November high, MITH‘s 58% drop marks the current range as a reasonable area to expect accumulation.
The recent bearish flip of the 9, 18 and 40 EMAs might cause bulls to be less aggressive in bidding. However, possible support near $0.08522 and $0.08255 – between the 61.8% and 78.6% retracements – could see at least a short-term bounce.
Long-term consolidation suggests that the areas near $0.1137 and $0.1354 may be more likely to cause a longer-term trend reversal.
Bears are likely to add to their shorts at probable resistance beginning near $0.1523, which has confluence with the 18 EMA. A fast break of this resistance could trigger more selling near $0.1640, the start of the bearish move.
Duration: 6-week course From: November 15 to December 22 Date/Time: Twice a week, Mon and Wed at 7pm AEST Location: Zoom webinar
Where to Buy or Trade Altcoins?
These coins have high liquidity on Binance Exchange, so that could help with trading on AUD/USDT/BTC pairs. And if you’re looking at buying and HODLing cryptos, then Swyftx Exchange is an easy-to-use popular choice in Australia.
The crypto market is experiencing a sharp correction after approximately US$840 million was liquidated this week, draining nearly US$400 billion from the market.
Data from Coinglass (previously known as Bybt.com) shows at least 78,358 traders were liquidated in a span of just 24 hours. The largest single liquidation occurred on Bybit – ETH/USD, US$3.1 million.
ETH holders were by far the most affected compared to other cryptocurrencies such as BTC, which in 24 hours had a total of 1.13k BTC ($68.14 million) liquidated across most exchanges.
Most Currencies in the Red – Bitcoin Retests 58K Support
Liquidations were triggered when BTC plunged over 10 percent this week, dragging most of the market with it. Altcoins such as Binance Coin (BNB), Cardano (ADA), Solana (SOL), and Dogecoin (Doge) were in the red by double digits as well.
Many say the drop is due to the $1.2 trillion infrastructure bill that US President Joe Biden signed into law on November 15. The bill is embedded with various crypto tax provisions for entities considered “brokers” by US law, even if they aren’t, such as node validators. The unclear and biased language caused outrage in the crypto community, with many industry leaders calling for opposition of the bill.
Going back to Bitcoin, the daily RSI pulled back to 40k levels but the price is currently hovering above 60k, though a further drop is expected in coming weeks.
Compared to previous dips, this one represented only 12 percent off its all-time high (ATH), but the emotional reaction appears to be much more intense. Back in September, BTC retraced -25 percent before jumping to new ATHs.
SHIB, the Dogecoin-inspired Shiba Inu memecoin, experienced tumultuous price corrections last week, plunging more than -10 percent on Thursday, only to bounce back with a 50 percent rise over the weekend.
SHIB Rallies 50% in 24 Hours
The price of SHIB went from its ATH last week of 0.00008616 to 0.0000583 at press time, a -30 percent price drop.
SHIB/USD chart. Source: Messari
SHIB currently has a market cap of US$32.02 billion, with a $2.88 billion 24hr trading volume, as per data from Messari.
The token dropped on November 4 amid a massive sell-off from one whale that triggered a price drop of 22 percent, its biggest since September 10 when it plunged over 85 percent.
The whale had around 40 trillion SHIB, worth roughly US$2.8 billion at the time. Many were wondering where the tokens would end up. At the time of writing, the token holder had relocated the funds to three wallets, where they remain.
SHIB Takes the Lead
The Shiba Inu memecoin is one of the riskiest tokens in the market due to its extreme volatility. It is also one with the biggest returns. During Q3, for example, SHIB had a three-month ROI of 704 percent.
The coin is famous for being the rival of Elon Musk’s beloved Dogecoin. Musk tweeted last month that he doesn’t hold any SHIB, which in itself caused the price to drop 20 percent. However, it seems the SHIB army doesn’t care one way or the other for Musk’s opinions and plans to move on despite his claims.
Elon musk is either with us or Against us, Move with the movement or get moved on! $Shib Army … We winning
One of the biggest price boosts for SHIB came after the October auction of Shiboshis, a collection of NFTs inspired by the memecoin. They sold in just over 35 minutes, each piece snapped up for between US$350 and US$1050.
Elon Musk’s namesake memecoin Dogelon Mars (ELON) mimicked his SpaceX corporation in October by rocketing a massive 3,780 percent in value.
Much of the monthly gain in performance occurred at the back end on October 29 and 30, when the token rallied by more than 200 percent alongside its listing on OKEx and Crypto.com last Friday.
Thank you Martians for all of your overwhelming support to get us listed on OKEx. It is only one of many stops on our intergalactic mission. $ELON emissions are being transported to your wallets right now!
In what could be called the Year of the Dog for memecoins, Shiba Inu (SHIB) also shot up in October by more than 850 percent to hit a market cap of around US$38.5 billion, surpassing even Dogecoin, which has gained an astronomical 10,360 percent year-to-date.
The Dogs (All 45 of Them) Are Barking
Since the Dogecoin network launched on December 6, 2013, there are now no fewer than 45 meme-based crypto assets with dog-related nomenclature. Samoyedcoin (SAMO), for example, surged by around 2,925 percent to reach a market valuation of around US$458 million last month.
Whenever one of these coins starts to pump a little bit, everyone starts to think this could be the next nonsensical rally. It’s a casino, and it’s more fun than a roulette table.
Eric Wall, chief investment officer, Arcane Assets
Dogelon Mars is the fifth-largest meme-based crypto-asset, as rated by CoinGecko. Baby doge coin (BABYDOGE) ranks #7, and even it has spiked 560 percent in the last month.
ELON’s price corrected by almost 30 percent after topping out for the year at US$0.00000233, waving what looked a lot like a Bull Flag in the process.
The memecoin circus looks set to continue as Floki Inu, a token established in July and named after Elon Musk’s then-new Shiba Inu puppy, soared 220 percent, printing new all-time highs.
Floki Inu soars 200%. Source: Coingecko
Advertisement-Driven Pump
One of the oft-repeated buzzwords common to almost all coins and tokens is decentralisation. In the case of Floki Inu, however, it’s pretty obvious that decentralisation is a secondary concern, given that an effort is being made by a centralised group to pump up the price.
Notably, the marketing material lacks any reference to FLOKI’s reason for existence – an omission that in itself speaks volumes and ought to already raise the alarm bells for anyone paying attention.
Floki Inu on the move, as seen in London. Source: Twitter
All over the world, various campaigns have been launched to promote FLOKI, seemingly seeking to elicit a sense of “FOMO” (fear of missing out) from retail investors looking to pile in.
A tale of two dogs, as seen in London. Source: Twitter
This tactic appears to have been successful given the token’s parabolic price rise in the past 24 hours.
An Obvious Pump and Dump?
Traditional finance has often struggled to understand crypto valuations, but even crypto investors would struggle to put together a coherent investment case for a token such as FLOKI, a memecoin that ostensibly lacks purpose.
FLOKI isn’t alone, as a lack of utility hasn’t stopped its canine relative SHIBA from soaring in recent weeks. Remarkably, the original memecoin, DOGE, comprised 62 percent of Robinhood’s Q2 crypto revenue. Unfortunately for Robinhood, DOGE’s lack of publicity in Q3 contributed significantly towards the company’s 78 percent decline in crypto revenue.
One eagle-eyed Redditor noted that of the 158,865 FLOKI holders, a whopping 49 percent is held by a single address. Could this whale be behind the campaign pumping FLOKI’s price with a view to dumping it on retail investors? A cynic would say yes, but then again, so would a realist. Steve Hanke isn’t a fan of crypto in general, but in this case he may prove to be spot on:
A new meme coin, #Floki, is bombarding the London Underground with ads. Floki is yet another speculative asset in the mold of #Dogecoin. Meme coins have ZERO fundamental value and are only vessels for money laundering and pump-and-dump schemes.https://t.co/j8ZXFpvZci
FLOKI isn’t even listed with any major exchanges as of yet. So it’s likely that its run will continue. Much like a game of musical chairs, retail investors would be well-advised to ensure they are not left holding the bags when the music stops.
In the wake of the March 2020 Covid-19 financial meltdown, user growth in investment apps such as Robinhood skyrocketed as retail investors piled into stocks and crypto, particularly memecoins such as DOGE. Things have since taken a rather dramatic turn as the company recently reported results reflecting a 78 percent decline in crypto revenue, much of that blamed on DOGE.
Robinhood never had "crypto" revenue, they had dogecoin revenue.
This chart makes a lot more sense when you view it through that lens and consider how SHIB regularly does magnitudes more volume than DOGE. pic.twitter.com/F1bzItjsvf
This week, the company revealed in its Q3 earnings report that crypto revenue had dropped to US$51 million – a staggering 78 percent decline from Q2’s US$233 million. To be fair, it is still significantly up over the past year where in Q3 2020, it recorded only US$5 million in crypto revenue – a 880 percent increase over the period. In any event, some remained unimpressed.
This is catastrophic: HOOD's transaction revenue ex crypto is lower than it was in Q4 2020 and has not grown since Q3 2020 pic.twitter.com/bWC7MF1rra
Notwithstanding, total net revenues increased by 35 percent to US$365 million while other financials included a loss of US$1.32 billion. This represents a substantial improvement on the US$11 billion loss recorded in Q3 of 2020.
Split of the company’s revenue. Source: The Block
Robinhood and DOGE – A Match Made In Heaven?
Few could have imagined a few short years ago that a coin created as a joke would have a market capitalisation of US$34 billion, much less comprise 62 percent of a listed company’s crypto revenue. To provide some context, DOGE would rank approximately 238th in the S&P 500 index. Apple takes the number one spot at US$2.4 trillion.
Given that over 60 percent of Robinhood’s crypto revenue came from a coin whose value is derived by FOMO, speculation and celebrity endorsements, it isn’t surprising that revenues collapsed as interest in DOGE waned in favour of the latest canine-themed memecoin, SHIB.
Robinhood CFO Jason Warnick indicated on a call with reporters that customers had shifted focus towards equities in Q3, whereas:
In Q2, the story was about crypto, especially DOGE.
Jason Warnick, Robinhood CFO
Despite the significant decline in crypto revenue, CEO Vlad Tenev remained upbeat about some of the more exciting developments within the company:
This quarter was about developing more products and services for our customers, including crypto wallets. More than one million people have joined our crypto wallets waitlist to date. With 24/7 live phone support, we believe that Robinhood is becoming the most trusted and intuitive platform for retail and crypto investors.
Vlad Tenev, CEO, Robinhood
Users are looking forward to the release of Robinhood’s crypto wallet and hoping that the company lists SHIB later this year. Warnick has refused to rule it out but cited ongoing regulatory concerns as a possible reason not to.
Despite being forced to pay a US$70 million fine earlier this year for misleading its customers, they appears committed to investing in memecoins through the popular platform. It wouldn’t therefore be surprising to see SHIB pop up as a trading option in the near future.
DOGE pumped 800% within the first 24 hours of Robinhood listing.
Shiba Inu (SHIB), the token that ate dogecoin, hit an all-time high on October 24 with a month-to-date gain of almost 500 percent. SHIB traded at US$0.0000455, topping its previous best of $0.0000388 on May 10, and at time of writing was trading at $0.0000394.
SHIB Also Subject to Listing Frenzy
Prices for the meme token had surged by nearly 50 percent in the previous 24 hours and its latest high-water mark comes amid rumours that online brokerage platform Robinhood may soon list the cryptocurrency. Brazilian exchange Novadax listed SHIB just a few days ago, and popular trading app Public followed suit soon after.
Prices bumped over 200 percent in early October on the back of increased buying by whales and other large investors. While SHIB has gone ballistic this month, DOGE has gained just 27 percent and still trades well below its August high of US$0.35. Like SHIB, DOGE had hit a peak of just over $0.73 in early May.
Shiboshi NFTs Sell Out in Just Over Half an Hour
Adding to this month’s SHIB fever, the Shiboshi NFTs released on October 14 sold out in just over 35 minutes, fetching between US$350 and US$1050 apiece. And SHIB holders perhaps owed Tesla CEO Elon Musk a vote of thanks for posting an image of his new Shiba Inu puppy, Floki, which was at least partly responsible for the meme coin’s price surge.
The irony is that Musk, originally a champion of Dogecoin, confirmed on Twitter that he does not own any SHIB:
While some in the SHIB community hit out at Musk for damaging the price of SHIB (it dropped 20 percent after Musk’s tweet), some noted that Shiba Inu could survive handsomely without the influence of celebrities and should instead focus on the community.
Elon musk is either with us or Against us, Move with the movement or get moved on! $Shib Army … We winning
$1,000 Invested in Shiba Inu on January 1, 2021, Is Now Worth $500 Million
SHIB’s market capitalisation now exceeds US$15 billion, placing it well within the top 15 coins. SHIB/USDT is also the most traded pair on Binance over the past 24 hours, surpassing US$2 billion in traded volume.
SHIB traded at a mere $0.000000000077 on January 1, 2021. This means that the meme coin is up by a colossal 50,649,250 percent year-to-date. As such, a hypothetical investment of US$1,000 made on January 1 would be worth over US$500 million today.
